When Joe's Coffee Nook raised the price of a latte,Joe noticed a substantial change in his daily latte sales.A price reduction caused his sales to increase.From this information,you can assume the demand for lattes is ________.
A)static
B)supply-driven
C)asymmetrical
D)elastic
E)inelastic

Question

Quizplus · Accepted Answer

The fact that a price reduction caused an increase in sales suggests that the demand for lattes is elastic, meaning that a change in price has a significant impact on the quantity demanded. If the demand were inelastic, the change in price would have little effect on the quantity demanded.

When Joe's Coffee Nook Raised the Price of a Latte,Joe